Translation: Original published in Finnish on 8/6/2026 at 8:00 am EEST.

Biohit's H1 revenue grew by 6% and was slightly below our estimate. On the other hand, EBIT was clearly above our expectations. The strong profitability was driven, in particular, by the high proportion of the company's own production in sales during H1. Items comparable to receivables on the balance sheet continued to increase, and the outlook for their collection is uncertain. According to management, cash flows will be recognized gradually over the coming years. We are making a modest downward adjustment to our forecasts based on a slower pace of growth than we had anticipated and uncertainty regarding the outlook. In line with our forecasts, we adjust our target price to EUR 3.3 (was EUR 3.5) and, following the increase in the share price, lower our recommendation to Accumulate (was Buy). 

Revenue in line with guidance and our expectations

Revenue increased by 5.7% to 7.8 MEUR (H1’25: 7.4 MEUR) and missed our estimate of around 0.2 MEUR. Growth settled at the lower end of the 5-10% guidance range for 2026. Growth was particularly driven by the GastroPanel product family, which grew by around 90%, according to the company. Geographically, growth came mainly from the Other Countries segment. Screenings initiated in Chile also contributed to growth in the North and South America segment, though figures remained low in absolute terms. The subsidiaries' performance was sluggish as UK sales decreased by 3.8% due to price competition and Italian sales fell by 29.8% due to the subsidiary's shutdown and transition to a distributor model. In addition, the comparison period was strong for ColonView due to a tender that was won during that period.

Reported earnings excellent, but repatriation of cash flows remains delayed

EBIT rose by 28.6% to 1.5 MEUR (H1’25: 1.2 MEUR), and the EBIT margin was as high as 19.4% (H1’25: 15.9%). This result was well above our forecast of 1.1 MEUR. This overshoot is due to Biohit’s high-margin manufacturing, particularly the growth in GastroPanel’s share in H1, which increased the gross margin relative to the comparison period. Operating expenses were also slightly lower than we had expected. This is explained by the average number of employees during the period, which was 45 (H1’25: 49). We estimate that the decrease in personnel is due to the shutdown of the Italian subsidiary and expect it to be temporary since the number of employees was already trending upward at the end of the period (47). On the balance sheet, contract assets related to receivables from China continued to grow, totaling 10.6 MEUR at the end of the period (H1’25: 6.6 MEUR). According to management, the receivables will be collected gradually over the coming years. From the outside, it is impossible to assess the timeline for repatriation or the risks associated with it. Due mainly to the growth of these items, operating cash flow was weak at -1.3 MEUR. Cash flow from investing activities was -0.5 MEUR.

Moderate downward revisions

We are modestly lowering our revenue forecast for the coming years (4–6%) to reflect the development of the subsidiaries, uncertainty in China, and the likely delay in the FDA process. Our EBIT estimate is also decreasing moderately, in line with revenue.. In the big picture, we believe the investment case remains unchanged after the H1 report, and we expect the company to continue its profitable growth in the coming years, even though visibility remains relatively low. The expiration of the China agreement could have a significant impact and may also bring some negative surprises.

Valuation is moderate – growth in receivables clouds the picture

Based on our 2027 forecasts, the stock’s P/E ratio is approximately 17x and the EV/EBIT ratio, which takes net cash into account, is approximately 11x, which is clearly below that of global diagnostic peers. In our view, acceptable EV/EBIT multiples are under pressure due to the rapid growth in receivables. The EV/S ratio for 2027 is 1.8x, which is justified given the company's strong profitability. Our DCF model indicates a share value of EUR 3.3. We still believe the risk/reward ratio is favorable, although growth in Chinese receivables and termination of the agreement obscure the outlook.